Building a company that will prosper in the long term isn't just about cutting fuel consumption and saving energy, says Dale Rogers. It's also about ethics, social responsibility, and environmental stewardship.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Sustainability is about a lot more than saving energy, says Dale Rogers.
It's also about adopting business and supply chain practices that ensure a long life for a company, argues Rogers, who is professor of logistics and supply chain management and co-director of the Center for Supply Chain Management at Rutgers University. And it involves practices that pay off not only in building a reputation for corporate good citizenship, but in long-term prosperity.
Perhaps best known for his research on reverse logistics, Rogers has turned much of his attention to the topic of sustainability in recent years. At his former post at the University of Nevada-Reno, he led a major research project on sustainable supply chains, work that he is continuing at Rutgers. Rogers is currently writing a book on the topic with a former University of Nevada-Reno colleague, Craig Carter (now at Arizona State). In a nod to Philip Crosby's classic text Quality Is Free, Rogers and Carter have given their book the working title "Sustainability Is Free."
Rogers says his interest in the topic was sparked by a conversation with a Hewlett-Packard executive during a plane ride to a reverse logistics conference. She told Rogers that she was attending the conference as part of a broader effort to make H-P a sustainable company.
"I knew by the end of the ride that I had to write a book about this," he says. "It is safe to say this is a big idea."
Although companies often equate sustainability with energy conservation, that's just a small part of the picture, Rogers says. "It is not just a green, environmental movement. It is about being ethical and honest. It is about how to make something last for a long time. It's about increasing productivity, getting more out of what you are doing, and using fewer resources—particularly non-renewable resources. It is really about looking at things from a holistic point of view and not just for the short term."
Social responsibility comes into it as well, he says. "Part of sustainability is doing the right thing by the people in your company," Rogers says. Among other things, that includes ensuring good working conditions and promoting employee safety and wellness.
Dale Rogers explains the importance of reverse logistics as part of a sustainable supply chain
Showing the way
As for where the sustainability movement is headed, Rogers says adoption will likely be more evolutionary than revolutionary. It took time to bring Corporate America on board with the quality movement, he says, and it will probably be the same with sustainability. Nonetheless, he expects to see sustainability widely incorporated into supply chain processes and strategies over the next several years.
In fact, a number of companies in the logistics space have already taken major strides in that direction. One such company is Tennessee-based Kenco Logistic Services, a large logistics service provider.
Kenco recently signaled its commitment to sustainability when it named Deni Albrecht as its first leader of sustainability. Albrecht says his appointment "brings to the forefront a concern that has been in the background for several years." He credits Rogers, who has worked with the company on its sustainability initiative, with helping foster Kenco's culture of sustainability, and he echoes Rogers' broad view of what it entails. "The vision of sustainability in business is almost endless," he says. "It is about doing the right things and doing them efficiently."
Kenco is now working with customers on a variety of projects aimed at reducing energy consumption, transportation costs, and waste, according to Albrecht. "We pride ourselves on partnering with people of like vision," he says. It's not a one-way street, Albrecht adds. While Kenco might offer guidance to a customer looking to trim excess packaging, he says, "we also have some customers showing the way to us."
He cites GlaxoSmithKline Consumer Healthcare (GSK) as an example. Last year, GSK installed 11,000 solar panels on the roof of its Northeast regional distribution center near York, Pa. The company says it expects the array, the largest rooftop system in North America, will generate enough electricity to meet all of the facility's energy needs.
Albrecht admits that some customers still view sustainability as a cost, but he predicts that will change over time. "Since we've started this journey, we're dovetailing with Six Sigma thinking and using the low-hanging fruit approach. We believe we will get a quick buy-in once we show the dollars in acting sustainably," he says.
Making a difference
Another third-party logistics and transportation firm that has made a commitment to sustainability is New Jersey-based NFI. In April, the company launched what it calls "NFI Impact," an initiative aimed specifically at reducing its carbon footprint. In a press release announcing the program, CEO Sidney Brown said, "Running a sustainable business is vital to the health of this company and the environment. ... Fuel conservation, reducing emissions, solar energy, recycling, and building to LEED standards: these are our guiding principles as we move forward and conduct business." "
While the initiative itself is new, NFI's commitment to sustainability is not. The company has been working to cut back on carbon since 2004, when it joined the Environmental Protection Agency's (EPA) SmartWay greenhouse-gas reduction initiative. Today, a small but growing number of vehicles in its truck fleet run on bio-fuels. It is in the process of outfitting the fleet with super single tires, which are more energy efficient than traditional double tires. Engine speeds are capped at 62 mph and idling is limited to five minutes in order to maximize fuel efficiency. The company's sleeper tractors are being equipped with battery-operated auxiliary power units to further reduce fuel consumption and emissions. Most of the fleet's tractors use synthetic oil.
The company has also started its own renewable energy business, NFI Solar, which has already outfitted two of the company's office buildings with solar panels. It intends to add solar panels to those DCs whose roofs are strong enough to support the heavy solar arrays.
Last year, NFI joined the EPA's WasteWise program, which is aimed at reducing solid waste. Management was pleasantly surprised by the results of the company's baseline audit, which showed that its facilities were already doing a great deal of recycling, reports Susanne Batchelor, NFI's senior vice president of marketing, who has lead responsibility for the company's sustainability initiative. It has now upped the ante, giving managers of all 53 of its facilities goals for further reducing waste, she says.
As for what led NFI down this road, Batchelor says it all comes down to social responsibility. The company operates some 19 million square feet of DC space nationwide and has a fleet of 2,000 tractors and 6,700 trailers. "We looked at the company and said, 'We are big enough to make a difference,'" Batchelor recalls. "So we said, 'Let's start doing some positive things.'"
From the ground up
Another company that's decided it's big enough to make a difference is ProLogis. The company, one of the world's largest developers and operators of distribution space, with more than 435 million square feet in North America, Europe, and Asia, aims to be more than just a global leader in industrial development; it aims to be a global leader in sustainable industrial development. To that end, it has set three "environmental stewardship" objectives for itself: to minimize carbon emissions, to minimize the ecological impact of its developments, and to minimize the impact of its own operations.
To show that it's serious about green building, the company seeks outside accreditation for its facilities, obtaining independent verification that its properties meet local standards for environmentally responsible construction. In 2008, ProLogis pledged that every building it constructed in the United States would be built with the intent of earning LEED certification from the U.S. Green Building Council, says Michael Englhard, the developer's senior vice president and director of project management. It seeks similar certifications for its properties in Europe and Asia.
At ProLogis, "building" has come to be virtually synonymous with "green building," according to Englhard. Sustainable development, he says, "is just part of what we do."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”